Industry fund giants Hesta and Vision Super have cut ties with Israel, standing out among Australia’s large investors for compliance though earning vicious attacks in the Zionist media. Stephanie Tran and Michael West report.
Hesta and Vision Super have weathered an hysterical spate of attacks by Rupert Murdoch’s The Australian in recent weeks, accused of dishonesty, “cosmic stupidity”, being “nut-jobs”, “possibly in breach of the law” and failing to understand the “despicable” Hamas.
All this for simply doing the right thing. Their exit from investments associated with war crimes and the genocide in Palestine comes as Australia’s $4.2 trillion superannuation heads into its annual meetings season with members next week.
Despite the pearl-clutching in the pro-Israel media, HESTA and Vision Super actually stand out in Australia’s investment community for adhering to their own human rights policies. It is their duty.
White phosphorus, blood-red money. Australian Super profiting from genocide
While other large funds including Australian Super and have refused to adhere to their own obligations under the UNGP (United Nations Guiding Principles on Human Rights), in September, HESTA, the fund for health and community services workers, divested from several Tel Aviv Stock Exchange listed banks and from bonds issued by the State of Israel.
The decision followed months of sustained pressure from members, including a petition with more than 3,300 signatures urging the fund to
“stop using our superannuation to fund genocide”.
A HESTA spokesperson said the move was driven by risk mitigation.
“To protect member returns, a couple of months ago we exited holdings in several banks listed on the Tel Aviv Stock Exchange and bonds issued by the State of Israel due to an assessment of higher risk.”
Vision Super followed in late October, dumping its Israeli stocks and bonds, citing the United Nations finding that Israel has committed genocide in Gaza as a critical factor in their decision.
Billions invested in companies tied to genocide
Despite these withdrawals, some of the country’s largest super funds continue to hold investments in companies accused of direct complicity in the Gaza genocide.
Australia’s biggest fund, Australian Super, still holds shares in Elbit Systems, Israel’s largest weapons manufacturer and in ICL Group, a chemicals giant that produces white phosphorus, which Israel has deployed in civilian areas.
Australians now hold $4.2 trillion in superannuation, money that is invested across global markets and often into companies with little visibility to everyday members.
Both the Association of Superannuation Funds of Australia (ASFA) and the Australian Council of Superannuation Investors (ACSI) deny responsibility for providing guidance on investments linked to international law violations.
When contacted by MWM earlier this year, ASFA said it “does not have an industry position on this issue”, while ACSI, despite positioning itself as the industry’s voice on “financially material ESG issues”, said it was “not our department”.
Hot potato: AusSuper, ASFA, ACSI duck for cover on war crimes super
International law obligations extend beyond government
Legal experts warn that both states and the private sector have obligations to ensure they are not complicit in genocide.
Former Australian Human Rights Commissioner Chris Sidoti, who served on the UN Commission of Inquiry on Palestine and Israel, told MWM the findings of the Commission put both governments and companies on notice.
“States like Australia, and the private sector too, are now on notice,” Sidoti said. “A UN Commission of Inquiry has found war crimes, crimes against humanity and the crime of genocide, and they have responsibilities arising from that.”
Economy of genocide
In July, UN Special Rapporteur on Palestine, Francesca Albanese released a report detailing how corporations and asset managers, underpin an “economy of genocide”.
The report highlighted how financial institutions, including pension and superannuation funds, fund occupation and genocide via investments in Israeli treasury bonds and companies directly complicit in the genocide.
“The financial sector channels critical funding to both State and corporate actors behind Israel’s occupation and apartheid, despite many companies in the sector committing to the Principles for Responsible Investment and the United Nations Global Compact,” the report said.
“These financial entities channel billions of dollars into treasury bonds and companies directly involved in Israel’s occupation and genocide.”
Notwithstanding their good corporate governance, the actions of the super fund chiefs at Hesta and Vision Super are likely to encounter further excitable coverage in the pro-Israel press as they face members at their upcoming annual meetings.
New Future Fund chairman Greg Combet ducks for cover on Elbit war crimes investment